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Beware those Celebrity Studded Reverse Mortgage Ads - CFPB

Thursday, June 4, 2015

Older Americans are being warned that ads touting reverse mortgages "that seem too good to be true" might be just that.  Rather slyly using a tag line from one popular reverse mortgage advertisement, the Consumer Financial Protection Bureau (CFPB) has released results of a focus group study that found many participants were left with misimpressions about the product after viewing ads; perhaps that they are not a loan, are a government benefit, or would ensure they could stay in their homes the rest of their lives.

CFPB Director Richard Cordray, in a conference call with reporters regarding the study said, "As older consumers consider reverse mortgage loans to tap into their home equity, they need to be careful of those late night TV ads that seem too good to be true.  It is important that advertisements do not downplay the terms and risks of reverse mortgages or confuse prospective borrowers."

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